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Debt Service Coverage Ratio Formula Excel Template
Debt Service Coverage Ratio Formula Excel Template
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Suppose that company A is selling TVs and they have 2 stores as of now.
They want to expand and want to open a new store but they do not have
much cash in hand to invest now. So they want to explore the debt option
and want to take a loan for that. The company already have a loan in their
books so they are worried that they might not be able to get another loan.
Following is the details of their financials:
Debt Service Coverage Ratio is calculated using the formula given below
Debt Service Coverage Ratio (DSCR) = Annual Net Operating Income / Total Debt Service
Debt Service Coverage Ratio is calculated using the formula given below
Debt Service Coverage Ratio (DSCR) = Annual Net Operating Income / Total Debt Service